With the robust sellers market across the U.S. showing no signs of weakening, the time needed for selling a house in Texas continues to keep pace with the national average. Prices are rising, inventory is low and a steady influx of out-of-state buyers means Texas sellers are unlikely to see their homes languish in the listings for long. Find out how long it takes to sell a house in Texas and where current trends are likely to head in the future. 

Snapshot of Texas time on market

Even if you have yet to begin the search for a home in Texas, youve probably read the reports already. Theres something of a housing boom underway, at least from a sellers perspective. Median house-price rises are in double digits and inventory is critically low, particularly in Austin where the Months of Inventory index has been falling for two years. The latest available figures show that sales in Texas rose 3 percent in January 2021 on the previous month and the average days on market stood at 43 days for the state, with the following regional variations:

Average days on market by region 

• Austin - 28 days
• Dallas - 36 days
• Houston - 41 days
• San Antonio - 44 days

The latest report from the Texas Real Estate Research Center, using data for single-family homes as the baseline, showed that existing homes typically sold twice as fast as new homes. Overall, the current data points to a relatively quick sale for homeowners. Its important to remember, however, that the figures above dont cover the entire listing-to-closing period, which is closer to 95 days once all administrative processes are complete. 

The factors influencing time on market

Time on market is more nuanced than a simple case of demand outstripping supply, not least because the pandemic has established a new dynamic in Texas real estate. Longer-term factors include, in particular, historically low borrowing rates. The Federal Home Loan Mortgage 30-year loan rose only slightly to 2.7 percent in January 2021, meaning that there is still plenty of opportunity for homeowners to get on the housing ladder or to upscale. 

The so-called Tesla Effect is another factor keeping time to market down. As big-tech companies continue to migrate from Silicon Valley to Texas, time on market is squeezed further, particularly among higher-end luxury housing. 

Time on market would fall still further if construction could keep up with demand. Even if home construction in Central Texas increased by 13 percent in 2020, a building hiatus during the pandemic and record high lumber prices mean that there are not enough new homes coming into the market to satisfy the required inventory. 

Sales from a historical perspective

Based on national trends, homes are selling faster. According to research by Zillow, the average time on market (from listing to pending sale) nationally in 2020 was 25 days, down from 30 days in 2019 and 140 days in 2010 (including the closing period). That trend matches the conclusion of the Texas Real Estate Center, which found that time on market for single-family homes (both new and existing) has typically halved in the last 10 years. That figure includes a distinct drop in the last year as a shift towards working from home saw families relocate, upgrade and swap downtown for more space and less bustle in the suburbs. 

Forecast for the future

The trend is towards a consolidated sellers market, and reduced time on market as a consequence. Of course, for a state the size of Texas, activity is centered around individual hot spots rather than across the state as a whole. Among these is Central Texas, where housing construction hit record levels in 2020, and Austin, where the median sales price hit a record $313,594. Indeed, Austin is projected to be the nations hottest housing market in 2021, with Dallas-Fort Worth also in the top six. Credit for the boom can partly be linked to an influx of first-time millennial buyers into the local tech economy.  

The statistics tell only one story, of course. Whatever the trends in the economic landscape, the strongest strategy will always be the best possible presentation of a home at the optimum price point. Thats why it is important to tap into the skills of your realtor to secure the fastest, most rewarding sale.